Job openings fall again as UK market continues to decline
Budget uncertainty and high employment costs have led to the number of job vacancies in the UK continuing to fall, and competition is fierce.
This is according to the UK Report on Jobs survey for November from KPMG and REC, which indicated a continued downturn in recruitment activity and permanent placements in the country.
The study was based on responses sourced before the Autumn Budget and therefore likely reflects the effects of uncertainty over fiscal changes introduced by the government, including those related to the cost of employment to businesses.
The continuing decline in job vacancies is part of a larger trend that began almost two years ago and has seen a relatively steady contraction in the market, especially for temporary workers.
According to the data, the supply of candidates for new roles increased at its second-fastest rate since November 2020, with recruiters reporting that redundancies and fewer job opportunities have led to a marked increase in the number of job-seekers.
While the decline in permanent job placements in the UK continued in November, there is some good news. The rate of the downturn has eased somewhat and is now its weakest since November, while salaries have also seen a subdued rise as companies compete to attract skilled talent.
Permanent salaries continue to inflate, the report noted, although the rate of this increase is below its historic level due to the declining number of vacancies.
The number of job openings fell across almost all industries in the UK last month, with construction and retail workers the most affected. The only exception to this was a modest increase for temporary, short-term staff in the nursing and medical care sector.
“Despite a slight uptick in some indicators again this month, the latest figures confirm the jobs market remains stuck in contraction,” said KPMG UK Head of Advisory Lisa Fernihough.
“A complex business environment and uncertainty around the Budget kept hiring on ice last month, as business leaders weighed potential impacts.”
Fernihough said that while there will be relief at the absence of major tax hikes, this is likely not enough to have a major change on how businesses are hiring.
“For now, with many businesses still facing challenges it is likely many will maintain a cautious stance, balancing recent tech investments against the need to expand their workforce,” she said.
